Drew Michel
11-10-08
The Demand for Oil
 Demand will continue to rise as China and India grow
 The easy to extract oil on land and in shallow water is
gone
 The (perceived or real) scare of “peak” oil will continue
to drive the price higher
 This will continue to spur investment in deepwater
and is creating a case to rework shallow offshore wells
 Repair of Gulf of Mexico damage from Hurricanes
Ivan, Katrina and Rita is not complete
Vessels and Offshore Structures
Currently Under Construction
 >100 now 70 Mobile Drilling Units (MODU) – rigs
 52 now ? Multi service Vessels (MSVs)
 More than a dozen large construction vessels
 More than a dozen offshore production facilities
 More than a thousand subsea wells, hundreds off West
Africa alone
 The ultra deep Gulf of Mexico is just starting
>$500,000/Day
Thialf Heavy Lift >$1 million/day
Latest Class of MSV >$200,000/day
Typical ROV Vessel >$110,000/day
The Demand for people
 Drilling
 Vessels
 Construction Vessels
1,ooo/year
2,000/year
300/year
1,000/year
 ROV Operations
 Company A – Currently have 1800 employees, needed
600 poeople/year for the next 3 years, now 450
 Company B - Currently have 15 employees, need 100 in
next two years
 Company C – Currently has <20 employees, need an
additional50
Vessel Personnel
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Captains
First Mates
Engine Mechanics
Electronics Technicians
Deck Hands & riggers
Winch Operators
Cooks
Galley hands
These numbers are for 6 months at sea
and home the remainder of the year
$175,000
$100,000
$75,000
$75,000
$50,000
$50,000
$38,000
$30,000
ROV Operations
 Offshore personnel
 Superintendents
 Supervisors
 Senior Technicians
 Technicians
 Trainees
These numbers are for 6 months at sea
and home the remainder of the year
$200,000/year
$110,000/year
$100,000/year
$75,000/year
$35,000/year
Onshore in Direct Support
 VP or senior managers
 Operations Managers
 Engineers
 Project Managers
 Technicians
These are Texas and Louisiana numbers
$200,000
$160,000
$150,000
$75,000
$50,000
Manufacturing Demand
 DP Systems
 Propulsion Systems
 Generators
 Winches
 ROV Systems
 Sonar
 Cameras
 Lights
 Other sensors
18 to 24 months
2 years
1 year
2 years
12 to 18 months
Questions